A fireplace is seen in entrance of a retailer vandalized by protesters in Hong Kong on October 4, 2019.
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The continuing protests in Hong Kong are more likely to spur China to meddle within the metropolis’s affairs extra, in response to one strategist that spoke to CNBC on Wednesday.
The feedback comply with a latest escalation in violence within the embattled metropolis, which has been tormented by civil unrest that has now stretched on for greater than 5 months.
“I feel what the protests in latest months made, the largest change, is I feel Beijing … will intervene in Hong Kong’s affair(s) much more,” David Cui, head of China fairness technique at Financial institution of America Merrill Lynch, advised CNBC’s “Road Indicators.”
“There might be very significant wealth and earnings redistribution measures,” Cui mentioned.
The strategist mentioned the demonstrations have proven that Beijing’s earlier coverage with Hong Kong, which he described as “moderately hands-off” because the metropolis returned to China in 1997, has not labored.
“I feel the outdated technique was to, you understand, let Hong Kong — notably the elites — run Hong Kong,” he mentioned, to function a “nice instance for Taiwan to return again to the motherland.”
Hong Kong — a former British colony returned to Chinese language rule in 1997 — has been crippled by widespread demonstrations since early June. It operates as a semi-autonomous territory below the “one nation, two techniques” precept — a construction that grants Hong Kong residents a point of economic and authorized independence from the mainland.
The unrest in Hong Kong has left Beijing with two choices, Cui mentioned. The primary, is that China may grant the particular administrative area “full autonomy.”
The second possibility, which Cui mentioned is “extra probably,” is that Beijing will “are available and considerably (formulate) lots of the insurance policies, together with financial insurance policies” for town.
“We’re speaking about huge change in Hong Kong coverage over the subsequent few years, we’re solely actually on the verge … of significant change, a really significant change,” Cui mentioned. “The insurance policies for the previous 20 years (are) in all probability going to get turned the wrong way up.”
— CNBC’s Grace Shao contributed to this report.